Ex-China hot dip galvanized (HDG) offer prices have remained stable, though, given the still bearish sentiments this week, a number of sellers have been ready to provide big discounts to accelerate demand. The future trend remains unclear as futures in China have posted some improvement, giving hope that spot prices are close to the bottom, at least for now.
Offers from mills this week are at $790/mt FOB for late April shipment, moving sideways compared to February 2 on average. However, the reference deal prices for ex-China HDG have been heard at $760/mt FOB, moving down by $20/mt compared to last week.
However, “the increasing HRC futures prices since February 8 signal improved sentiment towards the future prospects for the steel market,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have edged down with demand not improving to the level that market players had expected. However, since traders in the HDG market had not built up too many stocks ahead of the Chinese New Year holiday, inventory has been at relatively low levels, which may bolster HDG prices to some extent. The rainy weather has negatively affected the release of demand at present, while market players are bullish towards the prospects for the future HDG market. It is thought that HDG prices in the Chinese domestic market may edge up slightly in the coming week.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 33/mt ($4.9/mt) compared to February 2, standing at RMB 4,823/mt ($710/mt) ex-warehouse, according to SteelOrbis’ information.
As of February 9, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,160/mt (613/mt), increasing by RMB 103/mt ($15/mt) or 2.5 percent since February 2.
$1 = RMB 6.7905
